Microsoft Office Tutorials and References
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Using XNPV to Calculate the Net Present Value When the Payments Are Not Periodic
Figure 13.14.
Figure 13.14. You can determine a modified rate of return, figuring in a finan-
You can determine a modified rate of return, figuring in a finan-
cing rate and the interest rate for reinvested profits.
cing rate and the interest rate for reinvested profits.
Using
Using XNPV
XNPV tto Calculate
Calculate the
the Net
Net Present
Present Value
Value When
When the
the Payments
Payments Are
Are Not
Not
Periodic
The previous examples assume that everything happens on the last day of
each year. In reality, the business purchase date and the business sales
date might occur on other days. In such a case, you use XNPV.
Syntax
XNPV(rate,values,dates)
The XNPV function returns the net present value for a schedule of cash
flows that is not necessarily periodic. To calculate the net present value
for a series of cash flows that is periodic, you use the NPV function. The
XNPV function takes the following arguments:
rate
rate This is the discount rate to apply to the cash flows.
values
values This is a series of cash flows that corresponds to a
schedule of payments in dates. The first payment is optional and cor-
responds to a cost or payment that occurs at the beginning of the in-
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